HaloSource, Inc. (HAL.LN, HALO.LN), the global clean water technology company trading on London Stock Exchange’s AIM market, today announces its interim results for the six months ended 30 June 2017.
· Revenue from continuing operations of $0.9 million (H1 2016: $1.4 million)
· Net cash used in operating activities reduced by 58% to $2.1 million (H1 2016: $5.0 million)
· Reduced operating expenses from continuing operations by 38% to $3.2 million (H1 2016: $5.2 million), expected to decrease further in H2 2017
· Net loss reduced by 29% to $3.2 million (H1 2016: $4.5 million)
· Net cash and short-term investments at period end of $2.1 million ($2.1 million as at 31 December 2016)
James Thompson, CEO of HaloSource, said:
“We are very pleased with the progress we have made with our newly executed all Drinking Water business strategy. We generated over 30% revenue growth over H2 2016, our first half year period since exiting our other water related businesses. We made significant announcements in the area of lead-removal (our manufacturing scale-up deal with Chematek, SpA), restructured our supply-chain (exiting manufacturing in India) and signed a brand new e-commerce distribution partner in China (JiuBan).
HaloSource today is a very different business than just one year ago. We are no longer distracted by the non-core commercial activities of our former Environmental Water and Recreational Water businesses. This focus, along with the continued development of a new, proprietary heavy-metal removal offering, will fuel our growth and future profitability. With the expected addition of lead and arsenic reduction to our existing bacteria and virus disinfection technology we expect to cover a much larger segment of the global drinking water contamination landscape. This expanded technology offering not only provides us more to offer new and existing customers in Asia and Latin America, but also enables us to move into the largest markets for drinking water devices; the United States and Europe.
On the product side, in addition to continuing to offer our technologies on an OEM basis, we also are now offering our own astreaTM branded line of hydration products (bottles and pitchers); one of the fastest growing segments in the global housewares market. As evidenced by our recently signed distribution deal with JiuBan in China, the market for hydration products is accelerating. We also believe we will expand our gross margins with these types of deals, reflecting products developed with world-class technologies combined with world-class regulatory approvals. Whether it be US EPA, China Ministry of Health, NSF or WQA, our technologies enable us and our partners to offer un-matched differentiation.
While making progress on expanding our product offerings and technology functionality, we also have significantly reduced our operating costs and realigned our resources to focus exclusively on the growth of the Drinking Water business. Going forward we expect to see continued revenue growth, margin expansion (due to restructuring our supply chain and now offering higher margin hydration products) and importantly, continued tight control on costs. As a result of the strategic and operational decisions we have made over the past year, cashflow break-even is clearly within our sights.“
Read the full notice here